Broadcom LtdFind Ratings Reports
BROADCOM LTD's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BROADCOM LTD has strong liquidity. Currently, the Quick Ratio is 1.71 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 300.76% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY16||Q4 FY15|
|Net Sales ($mil)||4136.0||1840.0|
|Net Income ($mil)||-632.0||429.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||3097.0||1843.0|
|Total Assets ($mil)||49966.0||10592.0|
|Total Debt ($mil)||13642.0||3949.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||63.3||64.51|
|Return on Assets||-3.48||12.87|
|Return on Equity||-8.64||29.5|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||398.28||276.26|
|Div / share||0.51||0.42|
|Book value / share||47.43||17.06|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2896079.0||2687154.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 4.39 indicates a premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 4.36. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, BROADCOM LTD seems to be trading at a premium to investment alternatives within the industry.
|AVGO NM||Peers 27.92||AVGO 24.31||Peers 16.24|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
AVGO's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AVGO is trading at a significant premium to its peers.
|AVGO 13.79||Peers 20.11||AVGO NA||Peers 1.64|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AVGO is trading at a significant discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|AVGO 4.39||Peers 4.36||AVGO -177.34||Peers 0.99|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AVGO is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AVGO is expected to significantly trail its peers on the basis of its earnings growth rate.
|AVGO 6.26||Peers 4.74||AVGO 94.02||Peers 18.87|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AVGO is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AVGO has a sales growth rate that significantly exceeds its peers.